French accelerated safeguard proceedings (sauvegarde accélérée)

Accelerated safeguard extends a conciliation through a plan that the affected parties vote on in classes and that the court adopts. Article L. 628-1 of the French Commercial Code reserves it for a debtor engaged in a conciliation that can show a draft plan likely to gather sufficiently broad support from the affected parties. The procedure requires accounts that a statutory auditor has certified or a chartered accountant has prepared. A cessation of payments does not prevent the opening when it dates back no more than forty-five days before the conciliation request. The procedure only has effect with regard to the parties affected by the draft plan (article L. 628-6); salary claims remain outside the plan (article L. 626-30). The court adopts the plan within two months of the opening judgment, a period extendable to no more than four months in total (article L. 628-8). Each class votes by a two-thirds majority of the votes cast. Atos followed this procedure in 2024: its three classes approved the draft, the specialised commercial court of Nanterre adopted the plan on 24 October 2024, and €2.9bn of financial debt was converted into equity. For a company that owes €20m to €300m to private debt funds or a bank syndicate, accelerated safeguard makes it possible to bind to the plan the minority lenders that reject the agreement negotiated in conciliation.

A group with 900 employees and €220m of revenue has negotiated in conciliation the conversion of €60m of mezzanine debt into equity and the extension of €120m of senior debt. Two lenders holding 20% of the senior debt refuse. The group applies for the opening of accelerated safeguard proceedings; the senior class votes 80% in favour of the plan and the court adopts it seven weeks later.

• The prerequisite: a conciliation under way and a widely supported draft plan (article L. 628-1).
• The timetable: two months after the opening judgment, four months at most (article L. 628-8).
• The scope: only the parties affected by the plan come within the procedure (article L. 628-6).
• The two-thirds majority of the votes cast in each class (article L. 626-30-2).